2U, Inc. trading on the Nasdaq with ticker TWOU went public today. The IPO share price was $13 and the company sold 8 million shares. Stockholders sold 1.2 million shares for a total of 9.2 million shares being offered. According to the Street the company and some selling stockholders also included a 30-day option for underwriters to buy up to an additional 1.4 million shares.
2U, according to their site, was “Founded in 2008 by a team of education and technology veterans, 2U partners with top tier colleges and universities to create the world’s best online programs. Our cloud-based software-as-a-service platform allows our partners to educate and engage students globally. 2U’s dynamic course content, blended experiences and live face-to-face classes offer students around the world the chance to achieve their highest potential.”
In 2013 2U had a loss of $28.3 million on revenue of $83.1 million.
CEO Makes $5 Million
The CEO, according to Seeking Alpha, is paid $5 Million. That seems quite high for a company doing less than $90 Million in revenue, is not profitable, and lost almost $30 million on that revenue. A company that was founded in 2008 and just went public may want to consider conserving some cash, and I would think the CEO would want that as well assuming they have the companies best interests at heart.